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Is Israel the ‘Start-Up Nation’ Because of Its Security Situation?
The State of Israel is unique — it enjoys significant economic growth while maintaining one of the highest defense burdens of any country in the world. The reason for the high defense expenditure is that Israel has been engaged in a fight for its very existence from the day of its formation. Concurrently with the ongoing threat, Israel’s economy has grown rapidly, averaging around 4% annual growth over the last two decades.
Israel’s growth strategy is directly tied to investments in research, development, and technology. Science and technology have always been perceived by Israel as key factors in the power equation between itself and its surrounding adversaries. Israel’s expenditure on research and development as a proportion of GDP is one of the highest in the world at approximately 5%. The country’s emphasis on science and technology is evident in the high density of scientists and engineers within its population, which easily competes with that of any developed European country.
In its early years, Israel attempted to address its pressing security challenges by developing a national security strategy that emphasized qualitative parameters to neutralize the quantitative gaps vis-à-vis the surrounding enemy states. Soon after the establishment of the state, David Ben-Gurion — Israel’s first prime minister and minister of defense — articulated that due to Israel’s numerical inferiority, it must strive for qualitative superiority. Israel identified science and technology as critical for the accomplishment of this strategy.
Ben-Gurion further asserted that scientific research and technological development were essential not only for security needs, but also for the development of Israel in terms of agriculture, industry, and education. His plan was to enlist the best scientific minds of the Jewish people and to motivate young scientific talents to dedicate their lives to scientific research. They were to be provided with advanced equipment and well-equipped laboratories in fields such as physics and biology, with the expectation that they would align their research efforts towards the security and development of the country.
Given that “big science” involves long development cycles, high uncertainty, substantial risk, and a considerable chance of failure, engaging in extensive private-commercial science and technology projects without state intervention was exceptionally challenging, if not impossible, in the initial decades of Israel’s existence. The necessity for government funding stands out as a primary obstacle for smaller nations seeking to cultivate such capabilities. However, despite the challenges it faced and its status as a small state, Israel managed to overcome these barriers, successfully constructing and advancing a significant technological infrastructure. Israel attributes much of this success to making technological superiority a cornerstone of its national security strategy, which led in turn to the establishment of a well-developed and technologically advanced defense sector.
The end of the 20th century saw a dramatic change in the world’s technological landscape. State-owned technological innovation led primarily by the defense sector shifted towards innovation led by the entrepreneurs and investors of the private sector, establishing what we know today as the start-up age. Today, annual investment in commercial startups worldwide is significantly higher than investment in defense R&D. The private commercial sector dominates technological innovation and the defense sector often “feeds” on these innovations for its own applications, rather than the other way around.
Following this shift in technological dominance and leveraging its highly developed science and technology infrastructure, Israel has managed to position itself as a global source of technological innovation and business entrepreneurship, and is often referred to accordingly as the “Start-Up Nation.” Israel has many hi-tech companies listed on the NASDAQ, the second-largest stock exchange in the world after the New York Stock Exchange. Israel’s presence on the NASDAQ is second only to that of the United States and China. As of the end of 2022, there were over 130 Israeli companies listed on the NASDAQ, which is comparable to those of the British, French, and German companies on the exchange combined.
In the last decade, Israel’s investment in research and development has been the highest in the world relative to GDP by a significant margin. Additionally, Israel’s venture capital fundraising rate is among the highest globally on a per capita basis, and the success rate of its unicorn companies is particularly high. Between 1999 and 2014, approximately 10,000 start-up companies were established in Israel, with 2.6% achieving an annual profit of at least $100 million. In the Global Competitiveness Report for 2018-19, which ranked 141 countries, Israel was first in entrepreneurial culture and second in availability of venture capital. In 2021, investments in Israeli startups reached an unprecedented peak of $26 billion.
Given this context, it might seem reasonable to argue that aligning Israel’s highly developed technological ecosystem with its unique security context may have been relevant in its early decades, but has grown less so with time. This might appear on the surface to be true, as Israel’s economy seems to have extricated itself over the last few decades from the clutch of the defense sector and transformed the country into the “Start-Up Nation” it is today.
But the argument is inaccurate, as the connection between the Israeli hi-tech industry and the Israeli defense sector remains robust. To appreciate why, we need to delve into the Israeli technological ecosystem.
The ties to the defense system, particularly to the IDF, play a pivotal role for the Israeli hi-tech industry. In Israel, most citizens undergo mandatory military service, and after their discharge, many continue on active reserve duty. There is thus a continual interaction between the Israeli civilian and military domains.
This ongoing connection significantly empowers entrepreneurs serving in the IDF’s technological units to introduce novel technologies and devise solutions that can benefit the defense system. These entrepreneurs possess an in-depth personal understanding of that system and can identify its needs, weaknesses, and vulnerabilities. They utilize the training and extensive knowledge they acquired during their military service in the development process to great effect.
In the Israeli hi-tech sector, many of the start-up companies specializing in intelligence and cybersecurity are predominantly staffed by graduates of military technological units like Units 8200 and 81. These start-ups are involved in advancing defense-related technological projects, delivering training to defense entities, and providing prompt responses to the system’s operational needs. In many cases, the products offered by these companies are not generic but are meticulously tailored to meet specific operational requirements. Many projects undertaken by these companies are at the forefront of technological advancement.
To comprehend just how profound is the influence of this phenomenon on the Israeli hi-tech industry, we should examine the two units mentioned above, 8200 and 81. In the late 1990s, the IDF recognized the pivotal role of the cyber domain and took on the challenge of identifying and training suitable human resources. The IDF accordingly instituted unique advanced selection processes to recruit high-quality personnel. The innovative training program and courses transformed these young recruits into true experts in their fields.
Between 2003 and 2010, 100 or so officers and soldiers who completed their service in Unit 81 established around 50 start-up companies, collectively raising over $4 billion. Many of these companies continue to yield substantial revenues, and some have achieved successful exits. Unit 8200 was a major contributor to the emergence of many cybersecurity companies, including the legendary Check Point; Adallom, acquired by Microsoft for $320 million; and Armis, acquired by Accenture for $1.1 billion.
More than 1,000 start-ups have been founded by 8200 alumni. Its graduates are involved not only in cybersecurity start-ups but in many other fields as well, ranging from Waze to Wix to SolarEdge. These examples represent only a small fraction of the broader trend. It is no exaggeration to assert that graduates of these units have significantly shaped the Israeli hi-tech sector over the past decade. These units are a true powerhouse propelling the Israeli hi-tech sector, with a significant portion of the technology they develop flowing back to defense applications.
When analyzing the unique relationship between the IDF and the private commercial hi-tech sector in Israel, we can see that Israel’s unique security situation has created a mechanism through which both parties are so interwoven as to make it difficult at times to tell them apart. It is in Israel’s best interest to continue to nurture this unique relationship, which is beneficial for Israel’s prosperity as well as its security.
Nir Reuven is a researcher at the BESA Center, an engineer, and a former officer in the Merkava development program (the main Israeli battle tank). He has held management positions in the Israeli hi-tech industry and is an expert on technology. Currently he is co-manager of the Sapir College Innovation and Entrepreneurship Center. He is working on his Ph.D. and lectures at Bar-Ilan University. A version of this article was originally published by The BESA Center.
The post Is Israel the ‘Start-Up Nation’ Because of Its Security Situation? first appeared on Algemeiner.com.
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Hamas Says No Interim Hostage Deal Possible Without Work Toward Permanent Ceasefire

Explosions send smoke into the air in Gaza, as seen from the Israeli side of the border, July 17, 2025. Photo: REUTERS/Amir Cohen
The spokesperson for Hamas’s armed wing said on Friday that while the Palestinian terrorist group favors reaching an interim truce in the Gaza war, if such an agreement is not reached in current negotiations it could revert to insisting on a full package deal to end the conflict.
Hamas has previously offered to release all the hostages held in Gaza and conclude a permanent ceasefire agreement, and Israel has refused, Abu Ubaida added in a televised speech.
Arab mediators Qatar and Egypt, backed by the United States, have hosted more than 10 days of talks on a US-backed proposal for a 60-day truce in the war.
Israeli officials were not immediately available for comment on the eve of the Jewish Sabbath.
Israeli Prime Minister Benjamin Netanyahu’s office said in a statement on a call he had with Pope Leo on Friday that Israel‘s efforts to secure a hostage release deal and 60-day ceasefire “have so far not been reciprocated by Hamas.”
As part of the potential deal, 10 hostages held in Gaza would be returned along with the bodies of 18 others, spread out over 60 days. In exchange, Israel would release a number of detained Palestinians.
“If the enemy remains obstinate and evades this round as it has done every time before, we cannot guarantee a return to partial deals or the proposal of the 10 captives,” said Abu Ubaida.
Disputes remain over maps of Israeli army withdrawals, aid delivery mechanisms into Gaza, and guarantees that any eventual truce would lead to ending the war, said two Hamas officials who spoke to Reuters on Friday.
The officials said the talks have not reached a breakthrough on the issues under discussion.
Hamas says any agreement must lead to ending the war, while Netanyahu says the war will only end once Hamas is disarmed and its leaders expelled from Gaza.
Almost 1,650 Israelis and foreign nationals have been killed as a result of the conflict, including 1,200 killed in the Oct. 7, 2023, Hamas attack on southern Israel, according to Israeli tallies. Over 250 hostages were kidnapped during Hamas’s Oct. 7 onslaught.
Israel responded with an ongoing military campaign aimed at freeing the hostages and dismantling Hamas’s military and governing capabilities in neighboring Gaza.
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Iran Marks 31st Anniversary of AMIA Bombing by Slamming Argentina’s ‘Baseless’ Accusations, Blaming Israel

People hold images of the victims of the 1994 bombing attack on the Argentine Israeli Mutual Association (AMIA) community center, marking the 30th anniversary of the attack, in Buenos Aires, Argentina, July 18, 2024. Photo: REUTERS/Irina Dambrauskas
Iran on Friday marked the 31st anniversary of the 1994 bombing of the Argentine Israelite Mutual Association (AMIA) Jewish community center in Buenos Aires by slamming Argentina for what it called “baseless” accusations over Tehran’s alleged role in the terrorist attack and accusing Israel of politicizing the atrocity to influence the investigation and judicial process.
The Iranian Foreign Ministry issued a statement on the anniversary of Argentina’s deadliest terrorist attack, which killed 85 people and wounded more than 300.
“While completely rejecting the accusations against Iranian citizens, the Islamic Republic of Iran condemns attempts by certain Argentine factions to pressure the judiciary into issuing baseless charges and politically motivated rulings,” the statement read.
“Reaffirming that the charges against its citizens are unfounded, the Islamic Republic of Iran insists on restoring their reputation and calls for an end to this staged legal proceeding,” it continued.
Last month, a federal judge in Argentina ordered the trial in absentia of 10 Iranian and Lebanese nationals suspected of orchestrating the attack in Buenos Aires.
The ten suspects set to stand trial include former Iranian and Lebanese ministers and diplomats, all of whom are subject to international arrest warrants issued by Argentina for their alleged roles in the terrorist attack.
In its statement on Friday, Iran also accused Israel of influencing the investigation to advance a political campaign against the Islamist regime in Tehran, claiming the case has been used to serve Israeli interests and hinder efforts to uncover the truth.
“From the outset, elements and entities linked to the Zionist regime [Israel] exploited this suspicious explosion, pushing the investigation down a false and misleading path, among whose consequences was to disrupt the long‑standing relations between the people of Iran and Argentina,” the Iranian Foreign Ministry said.
“Clear, undeniable evidence now shows the Zionist regime and its affiliates exerting influence on the Argentine judiciary to frame Iranian nationals,” the statement continued.
In April, lead prosecutor Sebastián Basso — who took over the case after the 2015 murder of his predecessor, Alberto Nisman — requested that federal Judge Daniel Rafecas issue national and international arrest warrants for Iran’s Supreme Leader Ayatollah Ali Khamenei over his alleged involvement in the attack.
Since 2006, Argentine authorities have sought the arrest of eight Iranians — including former president Ali Akbar Hashemi Rafsanjani, who died in 2017 — yet more than three decades after the deadly bombing, all suspects remain still at large.
In a post on X, the Delegation of Argentine Israelite Associations (DAIA), the country’s Jewish umbrella organization, released a statement commemorating the 31st anniversary of the bombing.
“It was a brutal attack on Argentina, its democracy, and its rule of law,” the group said. “At DAIA, we continue to demand truth and justice — because impunity is painful, and memory is a commitment to both the present and the future.”
31 años del atentado a la AMIA – DAIA. 31 años sin justicia.
El 18 de julio de 1994, un atentado terrorista dejó 85 personas muertas y más de 300 heridas. Fue un ataque brutal contra la Argentina, su democracia y su Estado de derecho.
Desde la DAIA, seguimos exigiendo verdad y… pic.twitter.com/kV2ReGNTIk
— DAIA (@DAIAArgentina) July 18, 2025
Despite Argentina’s longstanding belief that Lebanon’s Shiite Hezbollah terrorist group carried out the devastating attack at Iran’s request, the 1994 bombing has never been claimed or officially solved.
Meanwhile, Tehran has consistently denied any involvement and refused to arrest or extradite any suspects.
To this day, the decades-long investigation into the terrorist attack has been plagued by allegations of witness tampering, evidence manipulation, cover-ups, and annulled trials.
In 2006, former prosecutor Nisman formally charged Iran for orchestrating the attack and Hezbollah for carrying it out.
Nine years later, he accused former Argentine President Cristina Fernández de Kirchner — currently under house arrest on corruption charges — of attempting to cover up the crime and block efforts to extradite the suspects behind the AMIA atrocity in return for Iranian oil.
Nisman was killed later that year, and to this day, both his case and murder remain unresolved and under ongoing investigation.
The alleged cover-up was reportedly formalized through the memorandum of understanding signed in 2013 between Kirchner’s government and Iranian authorities, with the stated goal of cooperating to investigate the AMIA bombing.
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Jordan Reveals Muslim Brotherhood Operating Vast Illegal Funding Network Tied to Gaza Donations, Political Campaigns

Murad Adailah, the head of Jordan’s Muslim Brotherhood, attends an interview with Reuters in Amman, Jordan, Sept. 7, 2024. Photo: REUTERS/Jehad Shelbak
The Muslim Brotherhood, one of the Arab world’s oldest and most influential Islamist movements, has been implicated in a wide-ranging network of illegal financial activities in Jordan and abroad, according to a new investigative report.
Investigations conducted by Jordanian authorities — along with evidence gathered from seized materials — revealed that the Muslim Brotherhood raised tens of millions of Jordanian dinars through various illegal activities, the Jordan news agency (Petra) reported this week.
With operations intensifying over the past eight years, the report showed that the group’s complex financial network was funded through various sources, including illegal donations, profits from investments in Jordan and abroad, and monthly fees paid by members inside and outside the country.
The report also indicated that the Muslim Brotherhood has taken advantage of the war in Gaza to raise donations illegally.
Out of all donations meant for Gaza, the group provided no information on where the funds came from, how much was collected, or how they were distributed, and failed to work with any international or relief organizations to manage the transfers properly.
Rather, the investigations revealed that the Islamist network used illicit financial mechanisms to transfer funds abroad.
According to Jordanian authorities, the group gathered more than JD 30 million (around $42 million) over recent years.
With funds transferred to several Arab, regional, and foreign countries, part of the money was allegedly used to finance domestic political campaigns in 2024, as well as illegal activities and cells.
In April, Jordan outlawed the Muslim Brotherhood, the country’s most vocal opposition group, and confiscated its assets after members of the Islamist movement were found to be linked to a sabotage plot.
The movement’s political arm in Jordan, the Islamic Action Front, became the largest political grouping in parliament after elections last September, although most seats are still held by supporters of the government.
Opponents of the group, which is banned in most Arab countries, label it a terrorist organization. However, the movement claims it renounced violence decades ago and now promotes its Islamist agenda through peaceful means.
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